Ronald Birch, who is single and age 28, earned a salary of
$70,000 in 2012 as a plumber employed by Lupo Company.
Birch was covered for the entire year 2012 under Lupo’s qualified
pension plan for employees. In addition, Birch had a net income
of $15,000 from self-employment in 2012. What is the maximum
amount that Birch can deduct in 2012 for contributions to an
individual retirement account (IRA)?